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While the information has been circulating in the largest European economies in recent days, so that after the blow to the real sector, it could now be affected financially, the national official institutions are not pessimistic. The NBS told “Blic Biznis” that the banking sector in Serbia is ready to face the upcoming challenges, but also that it will carefully monitor how banks in Serbia function.
The other day, he was surprised by the announcement by the German regulator, which said almost openly that banks are now under attack.
“German banks should prepare for a sudden increase in insolvency. The reason is that the crisis in the crown is pushing weaker companies to the brink and jeopardizing the growth of real estate values in the country. The strong economic recession reinforces fears that the number of insolvent companies will increase significantly in the coming quarters ”, warned the Bundesbank in its annual report on financial stability, estimating that the growth of insolvency will be higher in the manufacturing sector than in services and construction.
He added that rising unemployment and the number of household insolvencies could also lead to an increase in defaults on debts based on housing loans.
On the other hand, there are no such predictions from the Serbian central bank, but there is concrete information about the current state of the banking sector, as well as about the future movements of the NBS led by Governor Jorgovanka Tabaković.
“The Serbian banking sector has welcomed the global economic crisis as highly liquid, well capitalized and with the lowest level of problem loans since the indicator was monitored in the Republic of Serbia. It is ready to face the next challenges and support measures. economic, “said the NBS. for “Blic Biznis”.
In Serbia, the level of problem loans at the end of August 2020 dropped to 3.5 percent, which is the lowest level ever reached since the introduction of this indicator. In all sectors there was a decrease in the level of non-performing loans granted to the economy.
When asked whether the level of non-performing loans should be expected to rise now, which is the expectation of many developed European economies, the NBS said that “the synergistic effect of a series of measures is expected to prevent an increase in delays in the payment of loans “. impact on the quality of banks’ assets “.
In addition to stating that they continuously monitor the situation of the financial sector, as well as the situation of the entire national and international market, taking the necessary measures in the NBS, they announce and give control to the banks.
“In the coming period, the National Bank of Serbia will carefully monitor possible changes in the quality of bank portfolios and undertake more activities to prevent the effects of the crisis on the banking sector,” NBS told Blic Biznis.
It should be remembered that, in addition to delays in the payment of liabilities, banks and clients have other facilities in the repayment of loans (such as the possibility of refinancing or changing the expiration date of the last installments of consumer loans, cash and others, as well as the possibility of extending loans for housing). Regulatory preconditions to facilitate citizens’ access to finance (such as easier access to home loans).
“This confidence in the banking system has been preserved and is also reflected in the growth of household savings, the importance of which is especially evident in the conditions of growing uncertainty due to the pandemic,” concluded the NBS.
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